Infra Status to Affordable Rental Housing Complexes (ARHCs)
The department of economic affairs under the ministry of finance issued a notification to include “Affordable Rental Housing Complex” in the Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the category of “Social and Commercial Infrastructure”
“Affordable Rental Housing Complex” is defined as a project to be used for rental purpose only for urban migrant or poor for a minimum period of 25 years with basic civic infrastructure facilities such as water, sanitation, sewage or septage, road, electricity along with necessary social or commercial infrastructure and the initial rent fixed by Local Authority or Entities based on local survey of area where the project is situated.
Key points:
- It is sub-scheme of the Pradhan Mantri Awas Yojana- Urban that is implemented by the Ministry of Housing and Urban Affairs.
- The creation of ARHCs is as a part of the government’s economic package to address the Covid-19 crisis. The scheme is in line with the vision of Atma Nirbhar Bharat.
- Target Beneficiaries: Workers who come from rural areas or towns to work in manufacturing, hospitality, health and construction
- Special incentives like concessional loan at priority sector lending rate, etc. will be offered to private or public entities to develop ARHCs on their own available vacant land for 25 years.
- Technology Innovation Grant: Under it an expenditure of Rs. 600 crores would be provided for projects using identified innovative technologies for construction.
Thus, it will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work. Hence, cutting down unnecessary travel, congestion and pollution. It would create a conducive environment for entities to develop AHRCs on their own vacant land which would enable new investment opportunities and promote entrepreneurship in the rental housing sector.
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Month: Current Affairs - September, 2020